RHBInvest Research Highlights 27th December 2011

Malaysia Equities

Top Story Semiconductor – No Recovery In Sight Yet                                    Underweight Sector Update ¨       The growing uncertainty on the global economy has continued to impact the industry with more downgrades to revenue guidance by major tech players. ¨       Given the weakening demand outlook for 4Q11, we understand that several players have suggested that the industry has reached the bottom. They believe that: (1) inventory adjustment is expected to be over; and (2) the 2008/2009 semicon downturn lasted for two quarters, hence given that Oct 2011 global chip sales was the fourth month of yoy contraction, this suggests that a recovery is poised to occur beginning 2012.      Corporate Highlights HELP International – A Marginal Improvement                           Market Perform Results Note ¨       The 4QFY10/11 net profit of RM3.6m (-44.6% yoy, >100% qoq) took FY10/11 earnings to RM13.1m, a 31.6% decline yoy. This was above our expectations but slightly missed consensus estimates. As expected, only a minimal full-year GDPS of 2 sen was declared, as HELP continues to conserve its cash for the construction of its Subang 2 campus.